For sale to highest bidder: Pipex

13 Mar 2007

One of the UK’s last remaining independent broadband providers has officially been put on the market with the announcement that it has instructed UBS to advise it on its GBP300 million (USD600 million) sale. BSkyB, Carphone Warehouse, BT and Orange are among buyers expected to compete for the business, which has more than 570,000 residential and small business broadband customers.

Further consolidation in the UK broadband sector has long been predicted as the bigger players seek to scale up their customer bases to make their operations more effective. Last year Carphone Warehouse saw off stiff competition from Orange and BSkyB to acquire AOL UK’s broadband business in a GBP370 million deal. The sale of Pipex could be complicated by its components — the business includes a WiMAX joint venture with Intel and a hosting service, which are believed to be of little interest to some bidders.

United Kingdom, Pipex (part of Tiscali UK)